CHONGQING, China, Dec. 21, 2020 /PRNewswire/ -- China Xiangtai Food
Co. Ltd. (NASDAQ: PLIN) ("PLIN" or the "Company"), an emerging
growth company engaged in the food processing business, today
announced its financial results for the fiscal year ended
June 30, 2020.
Ms. Zeshu Dai, Chairwoman and Chief Executive Officer of the
Company, commented "Our financial results for the fiscal year 2020
reflect the impact brought by the pandemic of the COVID-19, which
accordingly led to the full brunt and unpredictability of our
business. However, our revenue was still recorded $110.6 million, representing an increase of 11.6%
compared to $99.1 million for the
fiscal year 2019. Facing the challenging year of 2020, we executed
well against our core business initiatives, gained market share in
the food industry. completed the acquisition of Chongqing Ji Mao
Cang Feed Co., Ltd. in April 2020 and
integrated industrial chain. We also explored several opportunities
during the year to drive our growth including opening hot pot
restaurants, launching new online marketing, expanding hog breeding
business in Guangxi Province, etc.
We saw very strong signs of recovery in our business from our
markets as containment measures of the COVID-19 were eased in
China. Besides upgrading and
optimizing our current core business, we will also continue to
invest in the pillars of our future growth and in capabilities, and
various markets that support our expansion and provide the
long-term returns to our investors."
|
For the Years
Ended June 30,
|
($ millions,
except per share data)
|
2020
|
|
2019
|
|
%
Change
|
Revenues
|
110.6
|
|
99.1
|
|
11.6%
|
Supermarket and
grocery stores
|
5.8
|
|
3.9
|
|
51.1%
|
Farmers'
market
|
80.5
|
|
95.2
|
|
-15.5%
|
Feed raw material
|
24.3
|
|
-
|
|
100.0%
|
Gross
profit
|
7.2
|
|
8.7
|
|
-17.0%
|
Gross
margin
|
6.5%
|
|
8.7%
|
|
-2.2pp
|
Income from
operations
|
0.5
|
|
6.1
|
|
-91.5%
|
Net (loss) income
attributable to the Company
|
(4.9)
|
|
4.4
|
|
NM
|
(Loss) Earnings per
share from continuing operations
|
(0.14)
|
|
0.24
|
|
NM
|
*Notes: pp represents percentage points
Fiscal Year 2020 Financial Highlights (all comparable to the
prior year period):
- Total revenues were $110.6
million, an increase of 11.6% from $99.1 million in fiscal year 2019.
- Gross profit was $7.2 million, a
decrease of 17.0% from $8.7 million
in fiscal year 2019.
- Gross margin was 6.5%, a decreased of 2.2 percentage points
from 8.7% in fiscal year 2019.
- Net loss attributable to the Company was $4.9 million, compared with net income
attributable to the Company of $4.4
million in fiscal year 2019.
- Basic and diluted loss per share from continuing operations
were $0.14, compared with basic and
diluted earnings per share from continuing operations of
$0.24 in fiscal year 2019.
Fiscal Year 2020 Financial Results
Revenues
Total revenues increased by $11.5
million, or 11.6%, to $110.6
million in fiscal year 2020, from $99.1 million in fiscal year 2019. The overall
increase was primarily attributable to the increase of our
feed raw materials revenues as we purchased Chongqing Ji Mao Cang
Feed Co., Ltd.("JMC") on April 3, 2020 which offset by
the decrease of farmers' market revenues.
|
|
For the Years
Ended June 30,
|
|
|
2020
|
|
2019
|
($
millions)
|
|
Revenue
|
|
Cost of
Revenues
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Revenues
|
|
Gross
Margin
|
Supermarket and
grocery stores
|
|
5.8
|
|
5.0
|
|
14.9%
|
|
3.9
|
|
3.3
|
|
15.6%
|
Farmers'
market
|
|
80.5
|
|
76.2
|
|
5.3%
|
|
95.2
|
|
87.2
|
|
8.5%
|
Feed raw
material
|
|
24.3
|
|
22.2
|
|
8.4%
|
|
-
|
|
-
|
|
-%
|
Total
|
|
110.6
|
|
103.4
|
|
6.5%
|
|
99.1
|
|
90.4
|
|
8.7%
|
Revenues from supermarket and grocery stores increased by
$2.0 million, or 51.1%, to
$5.8 million in fiscal year 2020,
from $3.9 million in fiscal year
2019. The outbreak of COVID-19 has shadowed China and general population in many aspects.
In order to ensure that consumers' basic living needs are met,
supermarkets and grocery stores in various places still operated as
usual. However, during the Chinese New Year and the COVID-19
outbreak, many food suppliers have raised product prices due to
temporary shortage in the supply, so we had to raise our selling
prices as well.
Revenues from farmers' market decreased by $14.7 million, or 15.5%, to $80.5 million in fiscal year 2020, from
$95.2 million in fiscal year 2019.
Due to the outbreak of COVID-19, the total supply of fresh hogs
largely decreased. The decrease was offset by the increase of unit
selling price.
Revenues from feed raw material were $24.3 million in fiscal year 2020, compared with
nil in fiscal year 2019, resulted from our purchase of the 51%
equity interest in JMC on April 3, 2020 and we began to engage
in raw feed material and formula solution wholesales business.
Cost of Revenues
Cost of revenues consists of cost of direct materials, labor and
manufacturing overhead costs. Total cost of revenues increased by
$12.9 million, or 14.3%, to
$103.4 million in fiscal year 2020,
from $90.4 million in fiscal year
2019.
Cost of supermarket and grocery stores increased by $1.7 million, or 52.4%, to $5.0 million in fiscal year 2020, from
$3.3 million in fiscal year 2019. The
cost of supermarket and grocery store revenues increased which was
in line with the increase of supermarket and grocery store revenues
as the purchase price of inventories increased. The increase of the
cost of supermarket and grocery store revenues was offset by the
depreciation of RMB against U.S. dollar of 2.9%.
Cost of farmers' market decreased by $11.0 million, or 12.6%, to $76.2 million in fiscal year 2020, from
$87.2 million in fiscal year 2019.
The decrease was mainly caused by the decreased volume at farmers'
markets, which was primarily attributable to the decreased revenues
brought under the influence of the African swine fever and the
COVID-19.
Cost of feed raw material was $22.2
million in fiscal year 2020, compared with nil in fiscal
year 2019, resulted from our purchase of the 51% equity interest in
JMC on April 3, 2020 and we began to engage in raw feed
material and formula solution wholesales business.
Gross Profit
Gross profit decreased by $1.5
million, or 17.0%, to $7.2
million in fiscal year 2020, from $8.7 million in fiscal year 2019. Overall gross
margin decreased by 2.2 percentage points to 6.5% in fiscal year
2020, from 8.7% in fiscal year 2019.
Gross margins for supermarket and grocery stores, farmers'
market and feed material were 14.9% 5.3% and 8.4%, respectively, in
fiscal year 2020. This compared to gross margins for supermarket
and grocery stores, farmers' market and feed material of 15.6%,
8.5% and nil, respectively, in fiscal year 2019.
Selling Expenses
Selling expenses increased by $0.2
million, or 44.2%, to $0.8
million in fiscal year 2020, from $0.6 million in fiscal year 2019. The increase in
selling expenses was primarily due to the increase of salary
expense of approximately $0.1 million
and the increase of shipping and stores decoration fees of
approximately $0.1 million.
General and Administrative Expenses
General and administrative expenses increased by $2.9 million, or 226.1%, to $4.2 million in fiscal year 2020, from
$1.3 million in fiscal year 2019. The
increase in general and administrative expenses was primarily due
to the increase of salary and insurance expenses of $0.3 million. In addition, the increase also
attributable to the increase of business consulting fee of
approximately $1.5 million and the
promissory note repayment extension penalty of $0.5 million. The increase also attributable to
the increase of approximately $0.5
million of legal expense mainly related to our financing and
acquisition of JMC activities and the increase of approximately
$0.1 million rent expense.
Provision for Doubtful Accounts
Provision for doubtful accounts increased by $26,000, or 3.5%, to $0.8
million in fiscal year 2020, from $0.7 million in fiscal year 2019. The change was
due to the fact that we had slightly more accounts receivables aged
over 6 months as of June 30, 2020 as compared to June 30,
2019.
Stock Compensation Expenses
We incurred approximately $0.9
million stock compensation expense to pay for certain
professional services valued at $650,000 during the year ended June 30, 2020
in connection to the issuance of our ordinary shares in
August 2019. We expect this is a one-time expense and we do
not expect such expenses will incur in the future period. In
addition, we incurred approximately $0.2
million stock compensation expense in relation to the vested
portion of the stock options issued to our independent directors.
Furthermore, we incurred approximately $67,000 on stock compensation expense in relation
to our ordinary shares issued to our business consulting firm for
its services performed from March 2020 to
June 2020.
Income from Operations
The income from operations decreased by $5.6 million, or 91.5%, to $0.5 million in fiscal year 2020, from
$6.1 million in fiscal year 2019. The
decrease was mostly attributable to the decrease of farmers' market
sales and the increase of selling expenses, general and
administrative expenses and stock compensation expense and offset
by the increase in supermarket and grocery store sales and feed raw
material sales as the reasons that we mentioned above.
Other Income (Expense), Net
Our other expense, net, consists of interest income, interest
expense, other finance expense, other income (expense), net,
estimated litigation charges and provision for doubtful accounts –
security deposit. Total other expense increased by $2.1 million, or 245.6% to $2.9 million in fiscal year 2020, compared to
other expenses of $0.8 million in
fiscal year 2019. The increase was mainly due to the increase of
interest expense of approximately $0.9
million as we incurred more penalty interest charges for
bank loans in default for the year ended June 30, 2020. The
increase was also due to the amortization costs of convertible
debts of approximately $0.4 million
for the year ended June 30, 2020. Additionally, we made an
allowance of approximately $0.7
million for the security deposit for a loan during the year
ended June 30, 2020. The increased other expense, net of
approximately $0.1 million was mainly
due to the can food donation we made during the outbreak of
COVID-19 during the year ended June 30, 2020.
Provision for Income Taxes
Provision for income tax increased by $10,000, or 4.5%, to $0.2
million in fiscal year 2020, from $0.2 million in fiscal year 2019. Under the
Income Tax Laws of the PRC, companies are generally subject to
income tax at a rate of 25%. The slight increase in provision for
income taxes was mainly to JMC which had taxable income during the
year ended June 30, 2020.
Net (Loss) Income
Net loss attributable to the Company was $4.9 million in fiscal year 2020, compared with
net income attributable to the Company of $4.4 million in fiscal year 2019. Basic and
diluted loss per share from continuing operations were $0.14 in fiscal year 2020, compared with basic
and diluted earnings per share from continuing operations of
$0.24 in fiscal year 2019.
Financial Condition
As of June 30, 2020, the Company had cash and cash
equivalents of $1.5 million, compared to $3.2
million as of June 30, 2019. Net cash used in operating
activities was $5.9 million in fiscal year 2020, compared
to $5.3 million in fiscal year
2019. Net cash provided by investing activities was $0.2
million in fiscal year 2020, compared to $1.2 million in fiscal year 2019. Net cash
provided by financing activities was $4.1 million in
fiscal year 2020, compared to $6.7
million in fiscal year 2019.
About China Xiangtai Food Co., Ltd.
Headquartered in Chongqing, China, China Xiangtai
Food Co., Ltd, is a food company primarily engaged in pork
processing. The Company's operations span key sections of the pork
processing value chain, including slaughtering, packing,
distribution, and wholesale of a variety of fresh pork meat and
parts. Primarily focused on pork products, the Company also offers
other fresh and processed products, including beef, lamb and
poultries. Through the recent acquisition of Chongqing Ji Mao
Cang Feed Co., Ltd, the Company has also expanded into the business
of feed raw material and feed formula solutions. Through its core
values, the Company is committed to maintaining the highest
standards of food safety, product quality, and sustainability to
provide high-quality, nutritious, and tasty food in a responsible
manner through its portfolio of trusted brands. For more
information, please visit http://ir.plinfood.com/.
Safe Harbor Statement
This announcement contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results.
Company Contact
China Xiangtai Food Co., Ltd.
Email: ir@cqplinfood.com
Investor Relations Contact
Ms. Tina Xiao, President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
CHINA XIANGTAI
FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,533,237
|
|
|
$
|
3,196,990
|
|
Accounts receivable,
net
|
|
|
40,572,757
|
|
|
|
39,522,737
|
|
Other receivables,
net
|
|
|
148,894
|
|
|
|
238,383
|
|
Prepayments,
net
|
|
|
7,720,452
|
|
|
|
213,596
|
|
Security deposits,
net
|
|
|
237,409
|
|
|
|
2,352,742
|
|
Current assets of
discontinued operations
|
|
|
63,185
|
|
|
|
174,467
|
|
Total current
assets
|
|
|
50,275,934
|
|
|
|
45,698,915
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Plant and equipment,
net
|
|
|
3,455,993
|
|
|
|
3,335,229
|
|
Intangible assets,
net
|
|
|
437,989
|
|
|
|
462,738
|
|
Goodwill
|
|
|
5,185,866
|
|
|
|
-
|
|
Operating lease
right-of-use assets
|
|
|
2,725,747
|
|
|
|
-
|
|
Deferred tax
assets
|
|
|
648,768
|
|
|
|
-
|
|
Other
receivables
|
|
|
39,685
|
|
|
|
9,597
|
|
Other assets of
discontinued operations
|
|
|
579,452
|
|
|
|
1,844,838
|
|
Total other
assets
|
|
|
13,073,500
|
|
|
|
5,652,402
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
63,349,434
|
|
|
$
|
51,351,317
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Short-term loans -
banks
|
|
$
|
4,359,210
|
|
|
$
|
4,150,309
|
|
Loans from third
parties
|
|
|
5,013,117
|
|
|
|
2,449,048
|
|
Short-term loans -
related parties
|
|
|
-
|
|
|
|
329,120
|
|
Current maturities of
long-term loan - bank
|
|
|
777,558
|
|
|
|
-
|
|
Convertible
debenture, net
|
|
|
4,768,312
|
|
|
|
-
|
|
Accounts
payable
|
|
|
7,510,432
|
|
|
|
8,654,056
|
|
Customer
deposits
|
|
|
1,266,073
|
|
|
|
704,354
|
|
Customer deposits -
related party
|
|
|
27,395
|
|
|
|
29,643
|
|
Other payables and
accrued liabilities
|
|
|
1,942,014
|
|
|
|
420,359
|
|
Other payables -
related parties
|
|
|
2,234,980
|
|
|
|
1,245,864
|
|
Operating lease
liabilities
|
|
|
49,171
|
|
|
|
-
|
|
Taxes
payable
|
|
|
3,342,127
|
|
|
|
2,974,059
|
|
Current liabilities
of discontinued operations
|
|
|
1,445,201
|
|
|
|
1,872,053
|
|
Total current
liabilities
|
|
|
32,735,590
|
|
|
|
22,828,865
|
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES
|
|
|
|
|
|
|
|
|
Long-term loan -
bank
|
|
|
-
|
|
|
|
866,231
|
|
Loans from third
parties
|
|
|
2,074,871
|
|
|
|
3,131,007
|
|
Long-term loans -
related parties
|
|
|
713,325
|
|
|
|
-
|
|
Operating lease
liabilities - noncurrent
|
|
|
581,083
|
|
|
|
-
|
|
Other liabilities of
discontinued operations
|
|
|
417,729
|
|
|
|
-
|
|
Total other
liabilities
|
|
|
3,787,008
|
|
|
|
3,997,238
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
36,522,598
|
|
|
|
26,826,103
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares,
$0.01 par value, 50,000,000 shares authorized, 23,971,084 and
21,964,027 shares issued and outstanding as of June 30, 2020
and 2019, respectively
|
|
|
239,711
|
|
|
|
219,640
|
|
Additional paid-in
capital
|
|
|
15,765,411
|
|
|
|
11,031,937
|
|
Deferred share
compensation
|
|
|
(47,708)
|
|
|
|
-
|
|
Statutory
reserves
|
|
|
1,670,367
|
|
|
|
1,496,642
|
|
Retained
earnings
|
|
|
7,034,899
|
|
|
|
12,085,566
|
|
Accumulated other
comprehensive loss
|
|
|
(856,218)
|
|
|
|
(308,571)
|
|
Total China Xiangtai
Food Co., Ltd. shareholders' equity
|
|
|
23,806,462
|
|
|
|
24,525,214
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
|
3,020,374
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
26,826,836
|
|
|
|
24,525,214
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
63,349,434
|
|
|
$
|
51,351,317
|
|
CHINA XIANGTAI
FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
|
|
For the Years Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
Supermarket and
grocery store
|
|
$
|
5,827,319
|
|
|
$
|
3,856,358
|
|
|
$
|
3,750,904
|
|
Farmers'
market
|
|
|
80,473,936
|
|
|
|
95,222,909
|
|
|
|
97,353,320
|
|
Feed raw
material
|
|
|
24,250,247
|
|
|
|
-
|
|
|
|
-
|
|
Total
revenues
|
|
|
110,551,502
|
|
|
|
99,079,267
|
|
|
|
101,104,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket and
grocery store
|
|
|
4,961,552
|
|
|
|
3,256,439
|
|
|
|
3,193,830
|
|
Farmers'
market
|
|
|
76,192,444
|
|
|
|
87,172,588
|
|
|
|
88,258,923
|
|
Feed raw
material
|
|
|
22,219,528
|
|
|
|
-
|
|
|
|
-
|
|
Total cost of
revenues
|
|
|
103,373,524
|
|
|
|
90,429,027
|
|
|
|
91,452,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
7,177,978
|
|
|
|
8,650,240
|
|
|
|
9,651,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
794,193
|
|
|
|
550,574
|
|
|
|
708,531
|
|
General and
administrative
|
|
|
4,167,587
|
|
|
|
1,277,820
|
|
|
|
981,347
|
|
Provision for
doubtful accounts
|
|
|
770,192
|
|
|
|
743,986
|
|
|
|
918,940
|
|
Stock compensation
expense
|
|
|
930,223
|
|
|
|
-
|
|
|
|
-
|
|
Total operating
expenses
|
|
|
6,662,195
|
|
|
|
2,572,380
|
|
|
|
2,608,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
515,783
|
|
|
|
6,077,860
|
|
|
|
7,042,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
3,048
|
|
|
|
2,163
|
|
|
|
388,781
|
|
Interest
expense
|
|
|
(1,673,563)
|
|
|
|
(730,780)
|
|
|
|
(1,282,291)
|
|
Other finance
expenses
|
|
|
(417,549)
|
|
|
|
(118,394)
|
|
|
|
(141,284)
|
|
Other (expense)
income, net
|
|
|
(89,405)
|
|
|
|
9,012
|
|
|
|
(18,596)
|
|
Provision for
doubtful accounts - security deposit
|
|
|
(718,437)
|
|
|
|
-
|
|
|
|
-
|
|
Provision for
doubtful accounts - loan receivable
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,506,778)
|
|
Total other expense,
net
|
|
|
(2,895,906)
|
|
|
|
(837,999)
|
|
|
|
(2,560,168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAXES
|
|
|
(2,380,123)
|
|
|
|
5,239,861
|
|
|
|
4,482,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
223,173
|
|
|
|
213,649
|
|
|
|
714,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
FROM CONTINUING OPERATIONS
|
|
|
(2,603,296)
|
|
|
|
5,026,212
|
|
|
|
3,768,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM
DISCONTINUED OPERATIONS
|
|
|
(1,796,237)
|
|
|
|
(662,621)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
|
(4,399,533)
|
|
|
|
4,363,591
|
|
|
|
3,768,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interest from continuing
operations
|
|
|
477,409
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO CHINA XIANGTAI FOOD CO., LTD.
|
|
$
|
(4,876,942)
|
|
|
$
|
4,363,591
|
|
|
$
|
3,768,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
$
|
(4,399,533)
|
|
|
$
|
4,363,591
|
|
|
$
|
3,768,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(559,320)
|
|
|
|
(267,546)
|
|
|
|
133,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE
(LOSS) INCOME
|
|
|
(4,958,853)
|
|
|
|
4,096,045
|
|
|
|
3,901,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to non-controlling interests from continuing
operations
|
|
|
465,736
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE (LOSS)
INCOME ATTRIBUTABLE TO CHINA XIANGTAI FOOD
CO., LTD.
|
|
$
|
(5,424,589)
|
|
|
$
|
4,096,045
|
|
|
$
|
3,901,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF ORDINARY SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
22,417,524
|
|
|
|
20,319,723
|
|
|
|
20,000,000
|
|
Diluted
|
|
|
22,417,524
|
|
|
|
20,944,951
|
|
|
|
20,083,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARE - BASIC
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.14)
|
|
|
$
|
0.24
|
|
|
$
|
0.19
|
|
Discontinued
operations
|
|
$
|
(0.08)
|
|
|
$
|
(0.03)
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARE - DILUTED
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.14)
|
|
|
$
|
0.24
|
|
|
$
|
0.19
|
|
Discontinued
operations
|
|
$
|
(0.08)
|
|
|
$
|
(0.03)
|
|
|
$
|
-
|
|
CHINA XIANGTAI
FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
For the Years Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(4,399,533)
|
|
|
$
|
4,363,591
|
|
|
$
|
3,768,109
|
|
Net loss from
discontinued operations
|
|
|
(1,796,237)
|
|
|
|
(662,621)
|
|
|
|
-
|
|
Net (loss) income
from continuing operations
|
|
|
(2,603,296)
|
|
|
|
5,026,212
|
|
|
|
3,768,109
|
|
Adjustments to
reconcile net income to net cash (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
508,354
|
|
|
|
521,925
|
|
|
|
542,189
|
|
Provision for
doubtful accounts
|
|
|
1,488,629
|
|
|
|
743,986
|
|
|
|
2,425,718
|
|
Stock compensation
expense
|
|
|
930,223
|
|
|
|
-
|
|
|
|
-
|
|
Late payment penalty
expense
|
|
|
500,000
|
|
|
|
-
|
|
|
|
-
|
|
Amortization of
operating lease right-of-use assets
|
|
|
73,346
|
|
|
|
-
|
|
|
|
-
|
|
Amortization of
convertible debenture issuance cost and discount
|
|
|
357,853
|
|
|
|
-
|
|
|
|
-
|
|
Deferred tax
(benefit) expense
|
|
|
(166,673)
|
|
|
|
213,649
|
|
|
|
(126,936)
|
|
Change in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
2,615,184
|
|
|
|
(16,864,582)
|
|
|
|
(12,021,191)
|
|
Accounts receivable -
related party
|
|
|
-
|
|
|
|
-
|
|
|
|
(40,780)
|
|
Other
receivables
|
|
|
52,333
|
|
|
|
(157,440)
|
|
|
|
(88,954)
|
|
Inventories
|
|
|
318,478
|
|
|
|
2,647
|
|
|
|
291,594
|
|
Prepayments
|
|
|
(5,556,930)
|
|
|
|
93,508
|
|
|
|
209,777
|
|
Security
deposits
|
|
|
1,388,179
|
|
|
|
(1,476,090)
|
|
|
|
-
|
|
Loan receivables -
interest
|
|
|
-
|
|
|
|
727,338
|
|
|
|
(384,788)
|
|
Accounts
payable
|
|
|
(4,206,084)
|
|
|
|
5,852,139
|
|
|
|
68,175
|
|
Customer
deposits
|
|
|
(3,329,873)
|
|
|
|
73,946
|
|
|
|
554,889
|
|
Customer deposits -
related party
|
|
|
(1,421)
|
|
|
|
(723)
|
|
|
|
32,049
|
|
Other payables and
accrued liabilities
|
|
|
1,564,210
|
|
|
|
165,216
|
|
|
|
245,373
|
|
Operating lease
liabilities
|
|
|
(45,716)
|
|
|
|
-
|
|
|
|
-
|
|
Taxes
payable
|
|
|
452,831
|
|
|
|
35,087
|
|
|
|
929,745
|
|
Net cash used in
operating activities from continuing operations
|
|
|
(5,660,373)
|
|
|
|
(5,043,182)
|
|
|
|
(3,595,031)
|
|
Net cash used in
operating activities from discontinued operations
|
|
|
(251,646)
|
|
|
|
(224,079)
|
|
|
|
-
|
|
Net cash used in
operating activities
|
|
|
(5,912,019)
|
|
|
|
(5,267,261)
|
|
|
|
(3,595,031)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of plant
and equipment
|
|
|
(700,399)
|
|
|
|
(20,635)
|
|
|
|
(89,351)
|
|
Repayments from loan
to third party
|
|
|
-
|
|
|
|
1,171,945
|
|
|
|
-
|
|
Cash received from
acquisition of JMC
|
|
|
859,461
|
|
|
|
-
|
|
|
|
-
|
|
Net cash provided by
(used in) investing activities from continuing
operations
|
|
|
159,062
|
|
|
|
1,151,310
|
|
|
|
(89,351)
|
|
Net cash provided by
investing activities from discontinued operations
|
|
|
-
|
|
|
|
42,234
|
|
|
|
-
|
|
Net cash provided by
(used in) investing activities
|
|
|
159,062
|
|
|
|
1,193,544
|
|
|
|
(89,351)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments from other
receivables - related parties, net
|
|
|
-
|
|
|
|
741
|
|
|
|
2,736,001
|
|
(Repayments of)
proceeds from other payables - related parties, net
|
|
|
(2,028,451)
|
|
|
|
701,245
|
|
|
|
609,048
|
|
Proceeds from
issuance of ordinary shares through private placements
|
|
|
-
|
|
|
|
200,000
|
|
|
|
-
|
|
Proceeds from
issuance of ordinary shares through initial public offering,
net
|
|
|
-
|
|
|
|
4,395,634
|
|
|
|
-
|
|
Proceeds from
issuance of ordinary shares with redemption rights
|
|
|
-
|
|
|
|
-
|
|
|
|
1,800,000
|
|
Proceeds from
short-term loans - banks
|
|
|
469,288
|
|
|
|
4,535,428
|
|
|
|
6,148,734
|
|
Repayments of
short-term loans - banks
|
|
|
(1,137,574)
|
|
|
|
(4,755,264)
|
|
|
|
(11,375,158)
|
|
Proceeds from
short-term loans - third parties
|
|
|
770,906
|
|
|
|
1,174,453
|
|
|
|
11,134,708
|
|
Repayments of
short-term loans - third parties
|
|
|
(1,638,334)
|
|
|
|
(322,285)
|
|
|
|
(6,138,861)
|
|
Proceeds from
short-term loans - related parties
|
|
|
-
|
|
|
|
331,075
|
|
|
|
-
|
|
Proceeds from
long-term loan - banks
|
|
|
-
|
|
|
|
923,830
|
|
|
|
-
|
|
Repayments of
long-term loan - banks
|
|
|
(64,619)
|
|
|
|
(1,004,659)
|
|
|
|
-
|
|
Proceeds from
long-term loans - third parties
|
|
|
2,040,691
|
|
|
|
-
|
|
|
|
-
|
|
Repayments of
long-term loans - third parties
|
|
|
(2,844)
|
|
|
|
-
|
|
|
|
-
|
|
Proceeds from
long-term loans - related parties
|
|
|
472,132
|
|
|
|
-
|
|
|
|
-
|
|
Repayments of
long-term loans - related parties
|
|
|
(76,793)
|
|
|
|
-
|
|
|
|
-
|
|
Repayments of notes
payable
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,537,184)
|
|
Proceeds from
convertible debentures, net of issuance costs
|
|
|
5,480,000
|
|
|
|
-
|
|
|
|
-
|
|
Changes in security
deposits
|
|
|
(15,069)
|
|
|
|
648,828
|
|
|
|
615,426
|
|
Net cash provided by
financing activities from continuing operations
|
|
|
4,269,333
|
|
|
|
6,829,026
|
|
|
|
3,992,714
|
|
Net cash used in
financing activities from discontinued operations
|
|
|
(192,325)
|
|
|
|
(178,500)
|
|
|
|
-
|
|
Net cash provided by
financing activities
|
|
|
4,077,008
|
|
|
|
6,650,526
|
|
|
|
3,992,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH
|
|
|
(4,296)
|
|
|
|
320,103
|
|
|
|
(10,769)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGES IN
CASH
|
|
|
(1,680,245)
|
|
|
|
2,896,912
|
|
|
|
297,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of year
|
|
|
3,216,005
|
|
|
|
319,093
|
|
|
|
21,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of year
|
|
|
1,535,760
|
|
|
|
3,216,005
|
|
|
|
319,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS: CASH AND CASH
EQUIVALENTS FROM DISCONTINUED OPERATIONS
|
|
|
2,523
|
|
|
|
19,015
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS FROM CONTINUING OPERATIONS
|
|
$
|
1,533,237
|
|
|
$
|
3,196,990
|
|
|
$
|
319,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income
tax
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Cash paid for
interest
|
|
$
|
488,360
|
|
|
$
|
823,551
|
|
|
$
|
1,389,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH TRANSACTIONS
OF INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivable -
related party offset with other payable - related party upon
execution of the tri-party offset agreement
|
|
$
|
1,195,585
|
|
|
$
|
439,479
|
|
|
$
|
50,627
|
|
Issuance of ordinary
shares with redemption rights of mezzanine equity
|
|
$
|
-
|
|
|
$
|
1,800,000
|
|
|
$
|
-
|
|
Operating lease
right-of-use assets obtained in exchange for operating lease
liabilities
|
|
$
|
3,240,920
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Issuance of ordinary
shares for acquisition
|
|
$
|
2,658,909
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Conversion of
convertible debenture into ordinary shares
|
|
$
|
857,165
|
|
|
$
|
-
|
|
|
$
|
-
|
|
View original
content:http://www.prnewswire.com/news-releases/china-xiangtai-food-co-ltd-reports-financial-results-for-fiscal-year-2020-301196627.html
SOURCE China Xiangtai Food Co. Ltd.